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HomeMy WebLinkAbout10/17/2000AGENDA CITY OF WHEAT RIDGE URBAN RENEWAL AUTHORITY Tuesday, October 17, 2000 7:00 p.m. Notice is hereby given of a Public Meeting to be held before the City of Wheat Ridge Urban Renewal Authority on October 17, 2000, at 7:00 p.m., City Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. 1. Call The Meeting to Order 2. Roll Call of Members 3. Approval of Minutes - September 19, 2000 4. Public Forum (This is the time for any person to speak on any subject not appearing on the agenda. Public comments may be limited to 3 minutes.) 5. Old Business 6. New Business A. Northwest Corner of 44th/Wadsworth B. Wheat Ridge Water District - Walt Petit C. Market Feasibility Study - Status Report 7. Other Matters 8. Adjournment - November 21, 2000 \\Comdev\comdev\Planning\Ecodev \AGENDAS\001017. W PD OE WHEAT - City of Wheat Ridge Planning and Development Department ~oc oR Aa° Memorandum TO: Wheat Ridge Urban Renewal Authority FROM: Alan White, Planning and Development Director (W SUBJECT: October 17, 2000 WRiJRA Meeting DATE: October 10, 2000 Agenda Item A-- Old Business: Please bring your map and property information from the last meeting for this discussion item. Agenda Item A- New Business: Members had requested that I invite Walt Petit to a WRLJRA meeting. He will be attending this meeting to discuss infrastructure needs in and near the Urban Renewal Area. MINUTESOF WHEAT RIDGE URBAN RENEWAL AUTHORITY September 19, 2000 7:00 P.M. 1. CALL THE MEETING TO ORDER The Wheat Ridge Urban Renewal Authority meeting was cailed to order by Chairman Jerry Roach at 7:05 p.m. 2. ROLL CALL OF MEMBERS Commissioners present: Sandra Collins Vance Edwazds Jim Goddard Elwyn Kiplinger Janet Leo Dick Matthews Jerry Roach Commissioners absent: Rae Jean Behm Norm Burkpile John Hall Mazgy Platter Also attending were: Alan White, Planning Director Claudia Worth, City Council Jesse Silverstein, Development Reseazch Partners Ann Lazzeri, Recording Secretary 3. APPROVAL OF MINUTES The minutes of the regulaz meeting of August 15, 2000 and the special meeting of August 23, 2000 were presented for consideration. It was moved by VANCE EDWARDS and seconded by JANET LEO to approve both sets of minutes as presented. The motion passed unanimously with JERRY ROACH abstaining. 4. PUBLIC FORUM There were none present to address the Authority. 5. OLD BUSINESS " WRURA Minutes Page 1 09/19/00 A. Tabor Amendment - Vance Edwards reported that a decision recently handed down by the District Court in Jefferson County ruled that urban renewal districts are not considered districts under the Tabor Amendment. 6. NEW BUSINESS A. Status Report on URA Market Feasibility Study - Jesse Silverstein of Development Reseazch Partners distributed and reviewed copies of a draft report of the first segment of the mazket feasibility study his firm is conducting for the urban renewal azea. This segment involves a physical invenYOry of land and businesses as well as demographics in the study area. Mr. Silverstein invited Authority members to call him with any questions or comments after they have had opportunity to review the draft. These comments, as well as those received at tonight's meeting, will be incorporated into his presentation at the next WRURA meeting. It was suggested that the next draft be made available to Authority members in advance of the meeting to give them time to review and have questions or comments ready at the time of the meeting. B. Northeast Corner of 44th/Wadsworth - Property Information - Alan White presented information relating to ownership, size, property and sales taY on nine properties at the northeast corner of 44th and Wadsworth. It was moved by SANDRA COLLINS and seconded by ELWYN HIPLINGER t6at Lots 1 through 9 at the northeast corner of WadswoMh and 44th Avenue be included in the Urban Renewal Area Consultant's feasibility study. The motion passed unanimously with JERRY ROACH abstaining C. Consultant for 44th/Ward Road Area Market Feasibilitv Study (Action Requested) - Alan White requested direction from the Commission regarding the market feasibility study for I-70, Tabor and 44th Avenue. Claudia Worth, District IV Council representative, indicated that residents of her district seem to be in favor of placing this area under urban renewal. It was moved by DICK MATTHEWS and seconded by SANDRA COLLINS that members of the HoteUMotel Task Force be contacted to see if they would like to jointly participate in the market feasibility study for the I-70, Tabor and 44th Avenue in terms of choosing a consultant and funding the study from the 2/5 hoteUmotel fund. The motion passed unanimously. OTHER MATTERS - There were no other matters to come before the Authority. WRURA Minutes Page 2 09/19/00 8. ADJOURNMENT - It was moved by DICK MATTHEWS and seconded by ELWYN KIPLINGER to adjourn the meeting at 8:40 p.m. The motion passed unanimously. JERRY ROACH Chair WRiJRA Minutes 09/19/00 Ann Lazzeri Recording Secretary Page 3 44th & Wadsworth Market Analysis Handouts for Wheat Ridge Urban Renewal Authority October 17, 2000 I'\ Development Research Partners Jesse D. Silverstein 303-933-4464 jessedrp@earthlink.net Trade Area Demographics The first questions of feasibility are how lazge is the mazket and how many consumer dollars are available? Retailers, businesses and developers traditionally, evaluate market potential based on "rings" of distance from the location in question. The following chart illustrates radii demographics for the study area. A one-mile radius is considered the primary trade area. 44`" & Wadsworth Ave & Wadsworth Blvd (1999) 1-mile radius 3-mile radius 5-mile radius Indicator Population Households Average household size Median age Population by Race: White Black American Indian Asian/ Pacific Islander Other Races 13,617 120,963 312,473 6,311 53,515 127,689 2.1 2.2 2.4 45.9 39.7 38.1 94.2% 89.1% 83.6% 0.5% 1.0% 13% 0.6% 0.9% 0.9% 1.9% 2.6% 3.0% 2.8% 6.5% 11.2% Hispanic Origin (any race) 83% 16.9% 25.1% Per capita income $23,518 $21,258 $21,344 Avg. household income $49,227 $46,986 $51,822 Median household income $40,726 $38,824 $42,129 Source: CACI Marketing Systems prajections; Development Research Partners Traditional analysis tends to focus on household incomes. This approach pits one location against another. For instance, the following compazison could indicate notably stronger competing locations elsewhere in the Denver azea compared to 44h and Wadsworth. A more in depth analysis is required to fully identify compazative advantages at the 44"' and Wadsworth location. Comparative Demographics Indicator 44th & Wadsworth 1-mile radius* Median age 45.9 Avg. household income $49,227 Median income $40,726 Source: CACI Marke[ing Systems projections 44th & Denver-Boulder Wadsworth CMSA** 5-mile radius* 38.1 36.4 $51,822 $74,296 $42,129 $53,024 *1999 estimate **2000 estimate Income-Density Approach to Primary Trade Area Demand The total purchasing power of a given trade azea is actually a better indicator of potential demand than average household income. For example, a recent U.S. Treasury Department commissioned analysis found that nationally, on average, lower income households spend proportionately more on goods and services than higher income households. For 44`n and Wadsworth, household income in the 1-mile radius trade area is estimated at: $310.7 million Total Trade Area Income 6,311 Househalds X$49,227 Avg. Household Income) According to the U.S. Census Bureau Consumer Expenditure Survey (CES), American households in general spend azound 85.4% of their annual before tax income on household goods and services. The Consumer Expenditure Survey also reports on spending by specific demographic sectors, which will be used to refine an estimate consumer spending for the primary trade azea. Trade Area Primary Trade CES Demographic Catego Characteristic Area Region Denver Metro Denver Consumers: Income $49,227 Household Income $50K-$69K: Household Size 2.1 2-person Household: CES Survey: Expenditures as % of Household Income 863% 84.4% 3-person Household: Setting Urban* Urban Consumers: Source: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey; CAC/ Marketing Systems * CES divides setting inta Urban vs. Rural 82.2% 82.9% 84.6% Of total expenditures, CES data reveals that spending for consumer goods and services capture from 82.2% to 84.6% of before-tax income. Denver metropolitan CES surveys indicates households spend an estimated 863% on average. Data for income characteristics is based on a relatively small sample (7,654 households), and therefore less emphasis is placed on this indicator. The 2-person household (33,234 households) sample is lazger and therefore somewhat a more reliable indicator. With primary emphasis on the overall metropolitan Denver sample (23,609 households) and urban consumers (93,854 households), and secondary consideration of household size, it is estimated that primary trade area households will spend between 84% and 86% of their income on household goods and services. Of total expenditures, retail spending accounts for about 42% of household expenditures: $264.1 million Total Spending $310.7 million Household Income X 85% Consumption) $110.9 million Retail Spending 42% Retail X$264.1 million Total Spending) Retail Market Gaps The Denver metropolitan azea is considered the primary market wherein consumers throughout the region shop among competing retailers. The overall Denver metropolitan region is used to benchmark typical consumer patterns for the market areaI . Retail Sales Per Household , ❑ Denver Metro 0 ZIP 80033 Each bar-grouping represents a distinct consumer expenditure category, and each bar represents total sales revenue, in that geographic region. This chart illustrates how the ZIP Code 80033 area competes within the lazger market. Notable observations: • Overall household consumption (Total Retail Trade) in the study area ($11,210) is less than the overall Denver mazket ($13,565), indicating the azea is under-served and a net exporter of consumer dollazs. • There is apparently an opportunity to further develop under-served mazkets in all categories, except auto parts & service businesses. Data shows the apparel/accessories sector to be meeting local demand. ' ZIP Code area is used, trade area/radii data under development ° `~,~ti yQ- 0\aA Gec~e~ ~y~~\ue PQQace~ ` ~`ro~ ~a~`c~gr a,~ F~ Another way of identifying market opportunities is with a mazket potential quotients. The ratio of local retail sales to metro Denver average sales trends provides a measurable indicator of market saturation. If the quotient is less than one, it indicates that the local area may be under- served in that retail category. Again, the area tends to be under-served in all categories except automotive. Location Quotient S ZJP 80033 Vl ~ y H !A d ~ d m w m o d E ~ ~ 05 ~'3 W ~ t y N E ' ? LL Q ~ o c~ as ~ W r 0 ~ Q Local Product Demand Rather than comparing local sales to a revenue benchmark, this analysis compares projected household expenditures with retail sales. Household expenditures for the ZIP Code 80033 area are Forecast based on U.S. Census Consumer Expenditure Survey analysis. The following chart compares forecasted per household expenditures with actual per household retail sales in the trade area. Average retail sales ($11,210) is less than projected household consumption ($19,912) in the ZIP Code azea indicating the overall mazket is under-served by existing businesses. This could be attributable to either an insufficient number of businesses, square footage, or a mismatch in the type and quality of goods being offered. Sales per Household vs. Household Spending p 7JP 80033 0 CES Estimated Expenditures $5,000 $0 N N w N uO N N U C NS aC y .'f m 'm Ol f6 -O . N :O 0 O d y m j N C 0) C C Y a' 07 « 16 C N c (/J Q d R y a U E y E 76 C ~ V p cn~ Q Q _C W ~ N ~ O LL_ LL u- Specifically, there is mazket potential for general merchandisers, food stores, ftuniture and home furnishing stores, restaurants and miscellaneous retailers. The chart on the following page maps retail categories to consumer expenditure categories used , to estimate local product demand. NOTE: The inFormation contained herein is based on a preliminary analysis. The data presented is currently being validated and verified as to reliability. Analysis of a more localized trade areas is currently underway. ~ o U L O ~ ~ y N U , C T N U o U ~ F C G y ~ ~ U rn U v. N ~ U N \ o U v~ c ~ ~ ~ ~ c N 'Q ~ M o I c ~ ~ o o C'7 o y ~ ~ N 0 V 7 o m N ~ N [C N ~ o LL ~ N ` L (y O L ~ 1.~.. O ~ v ~ o p p V b O O ~ p O ~ N V bD t (n ] D p s O ~ ' C U N N O O r ~n O o O y [y ' O N ' U ' U ' La. 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